Lamprell secures new Saudi contract

Lamprell said on Thursday that International Maritime Industries Company (IMI), the Saudi maritime joint venture in which it is a partner, intends to award the London-listed oil rig maker a contract for the construction and delivery of two jack-up drilling units.

The rigs will be built collaboratively between IMI and Lamprell for delivery to IMI's end client. There are ongoing discussions between end client, IMI and Lamprell to conclude the specifications and contract terms which, once determined, will result in final contract signing for the rigs. Lamprell said it will provide a further announcement upon contract signing.

Lamprell will undertake most of the fabrication work for both jack-up rigs at its Hamriyah yard in the UAE, while maximising work in Saudi Arabia to around 15% of the scope of work.

Chief executive officer Christopher McDonald said: "I am very pleased to receive this letter of intent from IMI for the first two jack-up rigs to be built by IMI and Lamprell. This is a significant step forward for the Saudi maritime yard. Following Lamprell's recent announcement regarding its ascension to Saudi Aramco's long term agreement programme, this is a further demonstration of the importance of the Saudi Arabian market to our strategic aspirations.

"The developing relationship between IMI and Lamprell will continue to be enhanced as we construct these rigs and we are excited by the opportunity to collaborate with them on such an innovative and important project."

At 1030 GMT, the shares were up 1.3% to 61.26p.